Is there compensation for termination of a commercial lease?

aLLOWANCE tenant

Home has developed an activity that has generated a clientele. Is there a right to compensation by the tenant to terminate the lease for use other than housing?

The contract is normally extinguished by any of the following 8 causes. The 7 first not entitled to any compensation for the tenant. The eighth is born who can afford the right to compensation for clientele to the lessee.

1.- Agreement between landlord and tenant.

2.- Exercise emption rights by the lessee becomes the owner, Item 31 in conjunction with Article 25 Act Tenancies.

3.- Tenant Abandonment.

4.- Death of tenant.

5.- Local Transmission, concurring with the requirements of Article 34 of the Mortgage Law (good faith, acquisition for value and registration).

6.- Death of the landlord who rented as usufructuary.

7.- Loss or destruction of the property.

8.- Expiration of the term agreed in the contract: This is the case that may cause the existence of an right to compensation to the article 34 the LAU, whose requirements are:

  • a) That develops in the local commercial activity venta public.
  • b) Such activity has been developing over the past 5 years old.
  • c) That the lessee has said the landlord willingness to continue with the contract for a minimum of 5 years, a market rent and a notice of 4 months at maturity. "Market rent" is agreed by the parties or determined by one arbitrator appointed by them.
  • d) That by signing the contract is not excluded that right.
  • and) That there are no other causes of extinction different from the deadline.

Article 34 of Urban Leases Act indicates calculation this compensation:

  1. If the tenant starts in 6 following months the same activity in the same municipality, compensation include the relocation costs and loss of customers suffering comparing what sold prior to the sale of the first six months at the new location. The investment required to be installed at the new location is not included in this concept. Only covers costs arising from the transfer.
  2. If the tenant does not initiate any activity or develop a different, and the lessor or a third party, at the old develop similar or like activity being undertaken by the tenant, compensation shall be one month for each year of the expired contract, with a maximum of 18 months rent.

Law mentions the possibility of submit disputes to an arbitrator, which is recommended as the terms "related" activities may cause quite a few conflicts. A "related" activity would benefit from allowing customers created by the tenant, but the determination of the concept can be source of problems. Thus, when drafting the contract is properly convenient advice. The models can be downloaded on the Internet usually do not consider this type of legal nuances when the truth can cost a large sum of money.

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